All Forum Posts by: Igor Avratiner

Joe White Steve Babiak I have used F&L for several properties and have recommend him to others. Fair prices and he has a fast turnaround time.

7200/ year for a 60k mortgage sounds high do you have a 15 or 20 year mortgage on it now? Even if you don't cash out to pay off debt I would look in to a refi to reduce the payments. On the other hand if it is a 15 year term in addition to the 240~ you are making in cash flow you are probably knocking off a few hundred in principal. So maybe over all you are benefiting to the tune of 400$ or more per month if you count principal pay down. If the house is in a good area, it's in good shape maybe it does make sense to refi while rates are still relatively low, roll in the credit cards to wipe your slate clean and let the income from the property pay the cards off. On a personal finance note try not to add new balances to those credit cards and look for ways you can reduce personal expenses so you can save more in addition to the rental cash flow. Also try to raise your income to save even more and after a few years of being disciplined with savings and the income + principal pay down from your rental you would be surprised how nice your personal balance sheet can look.

Make a list of local banks and credit unions. Start calling them and you will find a lender who can do a cash out refi for you with no seasoning.

Welcome to BP! And good luck! Regarding the home equity line most banks won't let you pull out 100% of the equity on your house since around 2008. Maybe they will do 80-85% CLTV (combined loan to value) is my best guess. So that means if your house appraised at $100k a bank won't open a line of credit if you already owe $85k (85% of the homes value) on your first mortgage. Depending on the interest rate on your car loan you may want to pay it off. If it's 0% or somewhere close it might not make sense. It's kind of all about the opportunity cost if you have somewhere better you can put your money that will pay more than what you pay in interest on your car loan (adjusted for risk) then go for it. If not maybe consider paying off the loan while you save more money every month not having to make a payment. Read the books listen to podcasts talk to as many people as you can, especially people who are active investors in your market and little by little things will make more sense.

Hmmm, I have experience in that area but none with short term rentals. I would probably start by going on AirBnB or something like that and seeing what other rentals are available in the same area. Maybe even contact those hosts and see if they will give you some insights. Does the unit have its own separate entrance? Maybe it can be more profitable as a traditional rental.

Just find ways to get involved that don't cost money. Go to reia groups, start talking to realtors, talk to a mortgage broker about getting pre qualified, call wholesalers from bandit signs, etc. Just start talking to as many people as possible and little by little the big picture will become clearer and clearer. Learn to ask good questions and find ways you can add value for the people you would like to learn from. Maybe even try to get a job in the industry so you can be close to it. In the meantime get good at saving money, 5k is a great start. Sit down and work up a personal budget, run your personal finances like you would run a business, this is good practice. Figure out where you can reduce your expenses, strategically pay down high interest debt, and how much you can save every paycheck. For example many real estate investors would go out and risk their money to earn a 10% return. If you have debt that you are paying 10% on it maybe wise to pay it off. I am not saying that deals haven't been done with 5k and a prayer but I think sometimes being in the right place at the right time has something to do with it. Unless you have a crystal ball you won't be able to predict the time, but you can put yourself in the right place by getting as close to the industry as possible via networking and some of the other things mentioned above. It's one of those things once you start on the path and stay on the path it's not that hard to hit your goals. It's may not be as fast as you would like but if you are consistent you can make anything happen.

For rentals I usually use 10% of the rent. Even if several years go by and you wind up spending less it's good to keep the money in reserve. It is a house and eventually things breakdown. In the past I have also used a flat per unit figure, for example 800 per unit per year. You may want to consider the age of the property and who will be living there.

Hi feel free to send me a message and I would be happy to look at the house. Really have no idea what it's worth until I know more about it.

Sorry I just read above you said your mothers goal is extra income. While rental real estate is a great vehicle for extra income it's not always the easiest path, especially if you are an out of state landlord. If she lives in Miami could she potentially sell this house and buy something closer to her or maybe closer to you in Ohio? Might be easier to manage that way. If the goal is extra income your mother could try to buy an annuity and get extra income without the stress of managing a property in another state. Another thing you said is that she has already invested some money in to it. One thing I learned a long time ago is that you don't have to chase bad money with good money, sometimes you get ahead faster by learning to cut your loses. By the way I speak from experience, 10 years ago I bought a rental in Pittsburgh which is a 6 hour drive from where I live. I learned some hard lessons with that experience.

Serita, to answer your question the violations stay with the property not with the owner, so if the house was sold your mother would be in the clear. However it takes 60-90 days for a deed to be recorded and show up in Philly so if there is a court date scheduled your mother may was to contact the city and let them know it's sold so they postpone the court date. Feel free to message me, I am familiar with code violations and working with the city. I think you mentioned your mother wants to rent it out. So I would ask myself what is my end goal?